Nintendo Downgrades Annual Forecast Amid 31% Decline in Sales to $6.1 Billion

Nintendo has released its financial report for the nine-month period ending December 31, 2024, revealing a continued downturn in both hardware and software sales as the company prepares for the upcoming launch of the Switch 2. Key highlights from the report include: For the nine-month period ending December 31, 2024, Nintendo's net sales reached ¥956.2 billion ($6.1 billion), representing a 31.4% year-over-year decrease. The company's net profit stood at ¥237.1 billion ($1.5 billion), marking a 41.9% decline from the previous year. In terms of hardware sales, Nintendo sold 9.5 million units, a 30.6% decrease from the previous year, while software sales totaled 123.8 million units, down 24.4% year-over-year. Looking ahead, Nintendo has revised its sales forecast for the fiscal year, with expected sales of ¥1.1 trillion ($7 billion), a 7% decrease from the previous forecast and a 31.2% decline from the previous year. Net profit is expected to reach ¥270 billion ($1.7 billion), down 10% from the previous forecast and 44.9% from the previous year. The company's dedicated gaming platform sales declined by 31.7% to ¥895.5 billion ($5.7 billion), which includes hardware, software, and accessories. Mobile and IP-related sales also saw a decline of 33.9% to ¥49.7 billion ($320 million), attributed to decreased revenue from the Super Mario Bros. Movie. In the hardware segment, the Switch console shipped 2.74 million units during the nine-month period, a 19.4% decrease from the previous year. The Switch Lite sold 1.73 million units, marking a 20.5% decline, while the OLED model shipped 5.07 million units, down 37.9% from the previous year. Despite the decline in hardware and software sales, Nintendo noted that sales have remained stable considering the Switch is in its eighth year. Software sales declined by 24.4% to 123.98 million units, although new titles such as The Legend of Zelda: Echoes of Wisdom and Super Mario Party Jamboree saw steady growth. Super Mario Party Jamboree had a successful launch, selling over 5.6 million units in its first eleven weeks, outperforming its predecessors. The game has sold a total of 6.17 million units since its release on October 17, 2024. The Legend of Zelda: Echoes of Wisdom sold 3.91 million units, while Mario & Luigi Brothership sold 1.4 million units. During the nine-month period, 19 titles sold over a million units, with 12 being Nintendo titles and seven from other software publishers. Nintendo noted that software sell-through declined significantly compared to the previous fiscal year, which saw the release of major titles like The Legend of Zelda: Tears of the Kingdom and Super Mario Bros. Wonder. Digital sales declined by 29% year-over-year to ¥245.8 billion ($1.5 billion), attributed to a drop in sales of downloadable versions of packaged software and add-on content. However, sales of download-only software slightly increased, with Nintendo recording stable revenue from Nintendo Switch Online. Overseas sales accounted for 76.5% of total sales, with 43.6% in The Americas, 25.3% in Europe, and 7.6% in Japan. Looking ahead, Nintendo has revised its expectations for the fiscal year, with hardware sales forecasted to reach 11 million units, down from the previous forecast of 12.5 million units, and software sales expected to reach 150 million units, down from the previous forecast of 160 million units.